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If you're out trying to find condo's in and around the [http://www.youtube.com/watch?feature=player_embedded&v=NDYZsMP2PPA Vancouver] area, chances are you've come across properties who have the distinction "Leasehold Strata." Appealing as they may be, understanding what you're buying can save you headaches when you eventually decide to sell the property down the road.

You're initial fascination with these properties could have been triggered by the good deal of these units with some units being offered at tens of thousands of dollars under what it would cost to get a similar unit using a Freehold Strata distinction. Not merely is the price enticing, but additionally many of the Leasehold Strata units in around the Downtown Vancouver area are in prime locations along False Creek.

Condo buyers' shouldn't run for your hills the minute they start to see the Leasehold distinction on a property, but behave as they would when buying any property and think about a number of options before they commit. What may be right for some might not be right for others.

A leasehold strata distinction is when a public authority or leasehold landlord the master of a parcel of land leases the land out to get a set number of years to a developer or leasehold tenant. Whenever a developer sells an individual strata lot, the developer sells the developer's interest as a leasehold tenant to the buyer who then assumes the interest as a leasehold tenant.

Since the buyer is acquiring the interest of a tenant under a lease, he or she buys the legal right to exclusive possession of the strata lot for that balance of the term remaining beneath the lease and the right to trade that interest. What happens at the end of the term of the lease will have a sizable bearing on the value of the property and should be carefully scrutinized. It is important that when looking to buy a leasehold strata property, the customer takes a close look on the model strata lot lease for that formula of the ultimate payout.

[http://www.youtube.com/watch?feature=player_embedded&v=NDYZsMP2PPA Real Estate] - The Triton on 10th, that is a development built on land belonging to the Vancouver school board at Broadway and Granville falls into such a category where upon expiration from the lease in 2096, the college board must purchase each interest on the current market rate.
The price of a two-bedroom unit in the Triton is about $500-$600 per sq . ft . depending on the layout, direction it faces and which floor the unit is on. The building is 13 years of age, in a location close to shops and restaurants, and minutes far from downtown.

A recent sale of the two-bedroom, 1240 square foot unit was $623 000 which is $502 per square foot. That's big money less per square foot than a comparable freehold strata unit. The Triton on 10th is actually a good fit for someone who doesn't' have the plan for a freehold strata unit. But buyers' should realize that with leasehold properties banks have stricter approval standards, the unit can be less liquid when it's time to sell, and they do not see the value appreciation the same way a comparable freehold unit would.

There are more developments in the downtown Vancouver area along False Creek whereas if the lease expires, there's no payout. Meaning if the lease expires, the leasehold landlord becomes the rental landlord, and the leasehold tenants become rental tenants paying rent in the current market rate. This sort of Leasehold property will depreciate in value and many more so as the lease date approaches. In this instance as the expiration date approaches to within 30-40 years any owner will have a very difficult time selling the property, namely because you would need to find someone capable of paying with cash because banks will be really reluctant to mortgage this type of property.

[http://www.youtube.com/watch?feature=player_embedded&v=NDYZsMP2PPA Vancouver Real Estate] - Many properties along Beach Avenue are quickly approaching their lease expiration dates, but inspite of the desirable location, sellers recognize that in order to sell such a property they must lower the cost. But as a buyer, careful consideration must be taken to the price of the unit and the number of years until the lease expires.

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